Safari MINDTAP last Homework 5 (due Dec-12) by 11.59pm est (currently open) Dueo

Question

Safari MINDTAP last Homework 5 (due Dec-12) by 11.59pm est (currently open) DueonDec 12 11:59 PM EST Attempts Average: 1 Sources of monopoly power A monopolist, unlike competitve firm, has some market power. It can raise its price, within 1mits, without the quantity demanded falling to zero. The main way it retains its market power is through barriers to entry-that is, other companies cannot enter the market to create competition in that particular industry. Complete the folowing table by indicating which barrier to entry appropriately explains why a monopoly exists in each scenario Barriers to Entry Exclusive ownership Government- of a Key Resource Created Monopolies Economies of Scale Scenario The Aluminum Company of America (Alcoa) formerly controliled all u.S. sources of bauxite, a key companies, Alcoa was a monopolist in the US, minum industry from the late 1Rh century component in the production of aluminum. Given that Alicoa did not sell bauxite to any other until the 1940s in an imaginary country, there is only one federally licensed lottery agency in any state; that is t is impossible for any private firm to start up a competitive lottery without a government license to do so. In the natural gas industry, low average total costs are obtained only through large-scale Run script atiservetiqu

Explanation / Answer

1. Scenerio 1 - This is case of Exclusive ownership of a key resource (because aluminium is owned by a single firm)

2.Scenerio 2 - This is case of Government created Monopolies ( only governmnet can give license)

3. Scenerio 3 - This is case of Economies of scale ( because only at large scale this business can be profitable)

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